Huntsman Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Note 26 - Operating Segment Information

Note 26 - Operating Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting Disclosure [Text Block]

26. OPERATING SEGMENT INFORMATION

We derive our revenues, earnings and cash flows from the manufacture and sale of a wide variety of diversified organic chemical products. We have three operating segments, which are also our reportable segments: Polyurethanes, Performance Products and Advanced Materials. We have organized our business and derived our operating segments around differences in product lines.

The major products of each reportable operating segment are as follows:

Segment		Products
Polyurethanes		MDI, polyols, TPU and other polyurethane-related products
Performance Products		Performance amines, ethyleneamines and maleic anhydride
Advanced Materials		Technologically-advanced epoxy, phenoxy, acrylic, polyurethane and acrylonitrile-butadiene-based polymer formulations; high performance thermoset resins, curing agents, toughening agents, and carbon nanomaterials

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. We use adjusted EBITDA to measure the financial performance of our global business units and for reporting the results of our operating segments. This measure includes all operating items relating to the businesses. The adjusted EBITDA of operating segments excludes items that principally apply to our Company as a whole. The following schedules include revenues, significant segment expenses and adjusted EBITDA for each of our reportable operating segments (dollars in millions).

Huntsman Corporation

	*Year ended December 31, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,900		$	1,109	$	1,055		$	6,064

Significant segment expenses:
Variable direct costs⁽²⁾		2,943			618		499			4,060
Adjusted fixed costs⁽³⁾		744			328		390			1,462
Other segment items⁽⁴⁾		(32	)		10		(13	)		(35	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	245		$	153	$	179			577

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(79	)
Depreciation and amortization—continuing operations										(289	)
Corporate and other costs, net⁽⁶⁾										(163	)
Net income attributable to noncontrolling interests										62
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(21	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										12
Certain legal and other settlements and related expenses⁽⁷⁾										(13	)
Loss on sale of business/assets										(1	)
Loss on dissolution of subsidiaries⁽⁸⁾										(39	)
Amortization of pension and postretirement actuarial losses										(39	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(46	)
Loss from continuing operations before income taxes										(39	)

Income tax expense—continuing operations										(61	)
Loss from discontinued operations, net of tax										(27	)
Net loss									$	(127	)

	*Year ended December 31, 2023*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,865		$	1,178	$	1,092		$	6,135

Significant segment expenses:
Variable direct costs⁽²⁾		2,904			647		546			4,097
Adjusted fixed costs⁽³⁾		787			329		370			1,486
Other segment items⁽⁴⁾		(74	)		1		(10	)		(83	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	248		$	201	$	186			635

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(65	)
Depreciation and amortization—continuing operations										(278	)
Corporate and other costs, net⁽⁶⁾										(163	)
Net income attributable to noncontrolling interests										52
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(4	)
Fair value adjustments to Venator investment, net										(5	)
Certain legal and other settlements and related expenses										(6	)
Certain nonrecurring information technology project implementation costs										(5	)
Amortization of pension and postretirement actuarial losses										(37	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(25	)
Income from continuing operations before income taxes										99

Income tax expense—continuing operations										(64	)
Income from discontinued operations, net of tax										118
Net income									$	153

	*Year ended December 31, 2022*
	*Polyurethanes*			*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	5,067		$	1,713		$	1,277		$	8,057

Significant segment expenses:
Variable direct costs⁽²⁾		3,718			907			686			5,311
Adjusted fixed costs⁽³⁾		821			348			382			1,551
Other segment items⁽⁴⁾		(100	)		(11	)		(24	)		(135	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	628		$	469		$	233			1,330

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations											(62	)
Depreciation and amortization—continuing operations											(281	)
Corporate and other costs, net⁽⁶⁾											(175	)
Net income attributable to noncontrolling interests											63
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net											(12	)
Fair value adjustments to Venator investment, net											(12	)
Certain legal and other settlements and related expenses											(7	)
Costs associated with the Albemarle Settlement, net											(3	)
Income from transition services arrangements											2
Certain nonrecurring information technology project implementation costs											(5	)
Amortization of pension and postretirement actuarial losses											(49	)
Plant incident remediation credits											4
Restructuring, impairment and plant closing and transition costs⁽⁹⁾											(96	)
Income from continuing operations before income taxes											697

Income tax expense—continuing operations											(186	)
Income from discontinued operations, net of tax											12
Net income										$	523

Huntsman International

	*Year ended December 31, 2024*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,900			1,109	$	1,055		$	6,064

Significant segment expenses:
Variable direct costs⁽²⁾		2,943			618		499			4,060
Adjusted fixed costs⁽³⁾		744			328		390			1,462
Other segment items⁽⁴⁾		(32	)		10		(13	)		(35	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	245		$	153	$	179			577

Reconciliation of total reportable segments’ adjusted EBITDA to loss from continuing operations before income taxes:
Interest expense, net—continuing operations										(79	)
Depreciation and amortization—continuing operations										(289	)
Corporate and other costs, net⁽⁶⁾										(160	)
Net income attributable to noncontrolling interests										62
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(21	)
Fair value adjustments to Venator investment, net and other tax matter adjustments										12
Certain legal and other settlements and related expenses⁽⁷⁾										(13	)
Loss on sale of business/assets										(1	)
Loss on dissolution of subsidiaries⁽⁸⁾										(39	)
Amortization of pension and postretirement actuarial losses										(39	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(46	)
Loss from continuing operations before income taxes										(36	)

Income tax expense—continuing operations										(62	)
Loss from discontinued operations, net of tax										(27	)
Net loss									$	(125	)

	*Year ended December 31, 2023*
	*Polyurethanes*			*Performance Products*		*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	3,865		$	1,178	$	1,092		$	6,135

Significant segment expenses:
Variable direct costs⁽²⁾		2,904			647		546			4,097
Adjusted fixed costs⁽³⁾		787			329		370			1,486
Other segment items⁽⁴⁾		(74	)		1		(10	)		(83	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	248		$	201	$	186			635

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations										(65	)
Depreciation and amortization—continuing operations										(278	)
Corporate and other costs, net⁽⁶⁾										(160	)
Net income attributable to noncontrolling interests										52
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net										(4	)
Fair value adjustments to Venator investment, net										(5	)
Certain legal and other settlements and related expenses										(6	)
Certain nonrecurring information technology project implementation costs										(5	)
Amortization of pension and postretirement actuarial losses										(37	)
Restructuring, impairment and plant closing and transition costs⁽⁹⁾										(25	)
Income from continuing operations before income taxes										102

Income tax expense—continuing operations										(65	)
Income from discontinued operations, net of tax										118
Net income									$	155

	*Year ended December 31, 2022*
	*Polyurethanes*			*Performance Products*			*Advanced Materials*			*Total*
Revenues:
Reportable segments’ revenues⁽¹⁾	$	5,067		$	1,713		$	1,277		$	8,057

Significant segment expenses:
Variable direct costs⁽²⁾		3,718			907			686			5,311
Adjusted fixed costs⁽³⁾		821			348			382			1,551
Other segment items⁽⁴⁾		(100	)		(11	)		(24	)		(135	)
Total reportable segments’ adjusted EBITDA⁽⁵⁾	$	628		$	469		$	233			1,330

Reconciliation of total reportable segments’ adjusted EBITDA to income from continuing operations before income taxes:
Interest expense, net—continuing operations											(62	)
Depreciation and amortization—continuing operations											(281	)
Corporate and other costs, net⁽⁶⁾											(172	)
Net income attributable to noncontrolling interests											63
Other adjustments:
Business acquisition and integration expenses and purchase accounting inventory adjustments, net											(12	)
Fair value adjustments to Venator investment, net											(12	)
Certain legal and other settlements and related expenses											(7	)
Costs associated with the Albemarle Settlement, net											(3	)
Income from transition services arrangements											2
Certain nonrecurring information technology project implementation costs											(5	)
Amortization of pension and postretirement actuarial losses											(49	)
Plant incident remediation credits											4
Restructuring, impairment and plant closing and transition costs⁽⁹⁾											(96	)
Income from continuing operations before income taxes											700

Income tax expense—continuing operations											(188	)
Income from discontinued operations, net of tax											12
Net income										$	524

	*Huntsman Corporation*				*Huntsman International*
	*December 31,*				*December 31,*
	*2024*		*2023*		*2024*		*2023*
Total assets:
Polyurethanes	$	4,151	$	4,261	$	4,151	$	4,261
Performance Products		1,214		1,170		1,214		1,170
Advanced Materials		1,097		1,143		1,097		1,143
Total reportable segments’ total assets		6,462		6,574		6,462		6,574
Corporate and other		652		674		652		679
Total	$	7,114	$	7,248	$	7,114	$	7,253

	*Year ended December 31,*
	*2024*		*2023*		*2022*
Depreciation and amortization:
Polyurethanes	$	161	$	141	$	136
Performance Products		67		72		72
Advanced Materials		52		53		57
Total reportable segments’ depreciation and amortization		280		266		265
Corporate and other		9		12		16
Total	$	289	$	278	$	281

	*Year ended December 31,*
	*2024*		*2023*		*2022*
Capital expenditures:
Polyurethanes	$	78	$	98	$	142
Performance Products		85		100		92
Advanced Materials		17		25		26
Total reportable segments’ capital expenditures		180		223		260
Corporate and other		4		7		12
Total	$	184	$	230	$	272

	*December 31,*
	*2024*		*2023*
Goodwill:
Polyurethanes	$	328	$	338
Performance Products		15		16
Advanced Materials		290		290
Total	$	633	$	644

(1)	A reconciliation of total reportable segments’ revenues to total consolidated revenues is provided in “Note 17. Revenue Recognition.”
(2)	Variable direct costs primarily include raw materials, utilities and freight-related costs.
(3)	Adjusted fixed costs primarily include personnel and maintenance costs at our manufacturing facilities, selling, general and administrative expenses and research and development expenses, less depreciation and amortization and certain of the adjustments noted in footnote (5) below.
(4)	Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects, less certain of the adjustments noted in footnote (5) below.
(5)	We use segment adjusted EBITDA as the measure of each segment’s profit or loss. We believe that segment adjusted EBITDA more accurately reflects what our CODM, who has been determined to be our Chief Executive Officer, uses to make decisions about resources to be allocated to the segments and assess their financial performance. Segment adjusted EBITDA is defined as net income of Huntsman Corporation or Huntsman International, as appropriate, before interest, income tax, depreciation and amortization, net income attributable to noncontrolling interests and certain Corporate and other items, as well as eliminating the following adjustments: (a) business acquisition and integration expenses and purchase accounting inventory adjustments, net; (b) fair value adjustments to Venator investment, net and other tax matter adjustments; (c) certain legal and other settlements and related expenses; (d) loss on sale of business/assets; (e) loss on dissolution of subsidiaries; (f) amortization of pension and postretirement actuarial losses; (g) restructuring, impairment, plant closing and transition costs; (h) (loss) income from discontinued operations, net of tax; (i) certain nonrecurring information technology project implementation costs; (j) costs associated with the Albemarle Settlement, net; (k) income from transition services arrangements; and (l) plant incident remediation credits.

(6)	Corporate and other costs, net includes unallocated corporate overhead, unallocated foreign exchange gains and losses, LIFO inventory valuation reserve adjustments, nonoperating income and expense and gains and losses on the disposition of corporate assets.

(7)	Certain legal and other settlements and related expenses for the year ended December 31, 2024 includes approximately $10 million related to the settlement of a claim in connection with a commercial dispute.
(8)	Loss on dissolution of subsidiaries for the year ended December 31, 2024 relates to the elimination and non-cash recognition of cumulative translation adjustments from accumulated other comprehensive loss due to the liquidation of certain subsidiaries.
(9)	Includes costs associated with transition activities relating primarily to our Corporate program to optimize our global approach to managed services in various information technology functions and our program to realign our cost structure in Europe.

	*Year ended December 31,*
	*2024*		*2023*		*2022*
Revenues by geographic area⁽¹⁾:
United States	$	2,124	$	2,140	$	3,089
China		1,082		1,084		1,305
Germany		373		423		522
Canada		216		211		242
Italy		207		216		249
India		191		164		196
United Kingdom		156		155		193
Other nations		1,687		1,718		2,227
Total	$	6,036	$	6,111	$	8,023

	*December 31,*
	*2024*		*2023*
Long-lived assets⁽²⁾:
United States	$	1,188	$	1,216
China		399		200
The Netherlands		315		321
Hungary		118		108
Saudi Arabia		102		112
Germany		82		92
Switzerland		67		76
United Kingdom		60		64
Singapore		59		66
Other nations		103		121
Total	$	2,493	$	2,376

(1)	Geographic information for revenues is based upon countries into which product is sold.

(2)	Long-lived assets consist of property, plant and equipment, net.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 48
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-48

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 270
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482964/270-10-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (ee)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 8: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 54
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-54

Reference 11: http://www.xbrl.org/2003/role/exampleRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 55
-Paragraph 47
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482785/280-10-55-47

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-22

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-31

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-34

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26C
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26B
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-15

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-42

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-40

Reference 20: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/280/tableOfContent

Reference 21: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-26

Reference 22: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-41

Reference 23: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 24: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-21

Reference 25: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482810/280-10-50-32

+ Details